All Forum Posts by: Account Closed

@George Chungyour cash flow will increase and management responsibilities will decrease if you are open to exchanging into a single tenant net leased property out of state. California is not the place for cash flowing deals at the moment.

@Shannon Kiefhaber this is a low risk deal that is secured by a long term lease. As the economy takes another downturn in 1-2 years, dollar stores will thrive again. The last down turn is what made dollar stores and fast food net leased investments popular. U.S. consumers lost a lot of their discretionary spending income from 2008-2012 meaning eating at Taco Bell and shopping at Dollar General would suffice. I have included a link to Moody's most recent Dollar General credit rating.

https://www.moodys.com/research/Moodys-rates-Dollar-Generals-new-notes-Baa2--PR_381368

@Ahmad Kakar have you you found a property yet? I have worked in Sacramento and Atlanta, and can safely say that you are moving in the right direction by looking at investing into Georgia as a California-based investor.

@Kurt D. what you are proposing is a medical building investor's dream. There is a niche buyer for these types of sale lease backs because they are relatively risk adverse. For example, Delta Dental buys these buildings when they have dental tenants.

@Kim Hopkins I meant that the extra 2% you are giving to your listing broker can be split equally with an outside broker. That is typically how commission splits work. In some cases, the listing broker may offer the extra 2% to outside brokers which helps with marketing your space to the local brokerage community. If you want to incentivize your space with even more commissions then I am sure that it would generate interest faster.

Hi @Eric Feng,

What are your thoughts on getting your real estate license? Atlanta is a healthy market and this would only help your investment efforts.

More commission should be worth spending more time on filling your vacancy. Let your broker know to tell cooperating agents that they are getting an extra 1% when they bring a tenant.

Hi @Charles Burgess,

Are you seeking financing for an owner user building or an income producing investment? I can refer you to some associates that lend in NC.

Timing is everything. Great work and patience @Teague Anderson!

Greetings @Prithvi Sri,

Without knowing anything about the property, you sound very qualified to be a borrower. I'm assuming your income is stable with such a high credit score. The loan-to-value is 60%. I do not see any issues with you getting approved for a commercial loan of this size.

One thing that will strengthen your case is having property management experience. If you have worked with residential properties for over 16 years, the lender may consider this experience. You might utilize a commercial property manager to handle this investment, which the lender would definitely consider favorably.

A commercial loan through your bank, credit union, or broker is a way to go. As you mentioned, you will be putting 40% down so the LTV requirements are met. Another way to finance the purchase is through a stock loan. These are no/low money down financing programs where you collateralize your stock (or bonds) portfolio, and the loan can be used to purchase real estate.